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How to start JCB Business in India?

jcb business investment

With the growing development and infrastructure work in India, the earthworks have a huge demand in the Indian construction industry.

Due to this demand, the need for earthmoving machines has also increased and has created a good business opportunity for the earthmoving business, also called the JCB business in India.

In this article, we will give you complete information related to the JCB business, which includes a business plan, licenses required, JCB business cost, business profit, etc.

JCB Business Plan

Machine type to choose from:

Excavators, backhoe loaders, wheel loaders, skid steer loaders, bulldozers and end loaders are the most commonly used earth moving machines in India.

Out of this machinery, the backhoe machine is the most versatile and the most commonly used earthmoving machine.

They can be used for multiple types of work including digging, demolitions, excavating, laying roads, transporting materials, levelling, loading etc.

Unlike excavators, backhoe loaders can easily travel on roads. Excavators are also useful but are preferred for larger projects and require a dumper/trailer for their transportation.

jcb business

The versatility of a backhoe machine can be increased by adding some attachments to it. These attachments include rock breakers, loader buckets, forklifts, dozer blades, etc.

Best places to start this business:

Due to land development works, building construction and infrastructure projects, suburban areas, tier 3 cities and rural areas are ideal places to start a JCB business.

Machine purchase:

JCB, Caterpillar(CAT), CASE, Bull, and Manitou are some of the most used Backhoe machine brands in India. You can choose a model as per your requirement and budget.

You can also start this business with a second-hand backhoe loader machine. This saves your initial investment burden. Do not buy a machine that is more than 6 to seven years old, as you will lose your profits for maintenance work.

Once your business is on track and you make some contacts, you can opt for a new machine or include more machines.

Running the Business:

To start this business you need to learn to operate a backhoe machine and you must have some basic knowledge about the maintenance tasks related to the machine.

Hire a machine operator who is reliable and has good machine operation skills. Salary for machine operators ranges from 15 to 22 thousand per month depending on the location and total working hours.

Machine maintenance:

Since backhoe machine parts are expensive, tie-up with a good and reliable workshop for machine maintenance tasks.

Backhoe machines are in high demand during the winter and summer seasons due to increasing construction and land development works. So the rainy season is the best time to do major maintenance work on the machine so that it is ready for the peak season.

Licenses and registration required

To operate a backhoe or a JCB machine in India, you or your operator require an LDRXCV driving licence. LDRXCV stands for Loader, Excavator, Hydraulic Equipment vehicle licence.

The process for getting this licence is the same as the other licenses like HPMV (Heavy Passenger Motor Vehicle).

You also require a sole proprietor business registration to start this business. You do not require any other special registrations or certificates to run the JCB business.

JCB business Cost

A standard backhoe machine in India costs around 25 to 30 lakh rupees. You can apply for a loan with 5 to 6 lakh rupees as a downpayment.

Here is the most commonly used JCB backhoe machine models and price list,

  • JCB 2DX Backhoe Loader –> Rs. 22,00,000
  • JCB 3DX Xtra eco-xcellence Backhoe Loader –> Rs. 25,00,000
  • JCB 3DX Super eco-xcellence Backhoe Loader –> Rs. 29,00,000
  • JCB 4DX Super eco-xcellence Backhoe Loader –> Rs. 28,00,000

If you have limited capital, then you can purchase a second-hand machine. 6 to 7 years of second-hand used backhoe machine costs around 12 lakhs to 13 lakhs. You can also get a loan to buy a used machine if it is in a good condition.

You may also require a hydraulic breaker, which costs 4 to 5 lakh rupees. A breaker is attached to the backhoe to break rocks, asphalt, concrete structures etc.

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Profit margin in JCB business

profit in jcb business

Usually, backhoe machine owners charge around 1000 rupees per hour for earthmoving works. This price may vary as per the location and diesel price.

Let’s consider, that you run a backhoe machine for 1500 hours per year,

Total hours – 1500 per annum
Per hour charges – 1000 per hour
so, total revenue – 15,00,000 per year.

Your expenses are,

Desiel charges (consider mileage 5 litre per hour) -> 5*100*1500 = 750,000 per year. ( Desiel price 100/litre)
Machine maintenance ( consider Rs. 100 per hour) -> 100*1500 =1,50,000 per year.

After deducting expenses your total income will be 6,00,000 rupees per year. So you can earn up to 50,000 rupees per month from the JCB business.

If you hire a machine operator (driver), you may need to pay him around 15,000 rupees per month. Still, you can earn 35,000 rupees per month from this business.

Of course, if you own more than one machine, you can earn more from this business.

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FAQ

  1. What is the JCB machine price in India?

    A JCB machine or a backhoe machine costs 25 lakh to 30 lakh rupees in India

  2. How much income we can earn from the JCB business?

    From the JCB business, you can earn up to 50,000 rupees per month.

  3. Which driving machine is required to operate a JCB machine in India?

    You require an LDRXCV driving licence (Loader, Excavator, Hydraulic Equipment vehicle licence) to operate a JCB machine in India.

I hope this article has resolved many of your doubts related to the JCB business. If you have any suggestions feel free to mention them in the comment box below.

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